1. Cash flow from operating activities Dunlop Distributions Inc. Income statement For the Year Ended 2023 December 31 Sales $920,000 Cost of goods sold $380,000 Gross margin $540,000 Operating expenses Depreciation expense $140,000 (other than depreciation) $40,000 Total expense $180,000 Net income $360,000 Changes in current assets (other than cash) and current liabilities during the year were: Increase Decrease Accounts receivable $20,000 Merchandise inventory $16,000 Prepaid insurance $8,000 Accounts payable $28,000 Accrued liabilities payable $4,000 Depreciation was the only noncash item affecting net income. Prepare the cash flows from operating activities section of the statement of cash flows.